As a country with shared borders and strong diplomatic ties, Vietnam emerged as Cambodia’s second-largest trading partner in the first month of 2024, with the exchange of goods between the two nations reaching over $670 million, according to the General Department of Customs and Excise (GDCE).
In January 2024, their trade volume hit $677.62 million, a 41.5% increase from $478.76 million in January 2023. Vietnam now ranks second, following China and ahead of the US, in Cambodia’s list of most significant trading partners.
Exports to Vietnam totalled $373.06 million for the month, a substantial rise of 116.6% from $172.23 million in the same period of 2022. Vietnamese exports to Cambodia slightly decreased by 0.6%, from $306.53 million to $304.57 million.
The surge in exports resulted in Cambodia’s trade surplus expanding to $68.49 million for the month, from a deficit of $134.3 million in January 2023.
Lim Heng, vice-president of the Cambodia Chamber of Commerce (CCC), told The Post on February 14 that enhanced diplomatic relations have accelerated trade, particularly in exports to Vietnam.
He said that agricultural products form an important part of the exports, as during harvest seasons, numerous local and Vietnamese traders purchase crops from Cambodian farmers for processing in Vietnam.
He noted that trade between the two ASEAN neighbours is expected to continue growing, bolstered by agreements on cross-border trade flows.
“The increase in the value of Cambodia’s exports reflects a growth in domestic production capacity. The current balance between exports and imports of Cambodian goods with all partner countries is closer, a departure from the past when import values greatly exceeded exports,” he explained.
“Vietnam is a vital market for Cambodian agricultural products,” he stressed.
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Author: Hin Pisei
Source: The Phnom Penh Post
February 16, 2024
